Fiat Chrysler Automobile’s false diesel emissions scandal could mean as much as $1.6 million for state coffers and up to a $3,000 payday for Georgians who bought one of the more than 2,500 faulty vehicles sold in Georgia.
Nationally, FCA has agreed to dole out $800 million along with recalling and repairing the 104,000 out-of-compliance Jeep Grand Cherokee SUVs and Ram 1500 pickup trucks made between 2014 and 2016. FCA was sued by in 2017 because the vehicles were equipped with 3-liter “EcoDiesel” engines programmed to hide emission levels in Environmental Protection Agency lab tests.
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The Atlanta Journal-Constitution on Thursday posed questions to a Fiat Chrysler spokesman, who pointed to a news release from the time of the January settlement agreement that says the company maintains it did not "deliberately scheme to cheat emissions tests and the company didn't admit wrongdoing."
“We acknowledge that this has created uncertainty for our customers, and we believe this resolution will maintain their trust in us,” Mark Chernoby, who is in charge of FCA’s North American safety and regulatory compliance, said in the news release.
“By concealing this software, Fiat Chrysler deceived regulators and violated environmental law,” said the U.S. Justice Department. “Fiat Chrysler’s conduct was serious and egregious. Its deception robbed the public of the clean air we work hard to protect and put law-abiding competitors at a disadvantage.”
This is the second time in recent years the federal government has dealt with a diesel emissions scandal. German car maker Volkswagen agreed in 2016 to pay the United States federal government a $2.8 billion penalty.
The breadth of FCA’s scandal meant vehicles went on the road emitting 35 times the legal limit of harmful nitrogen oxides, “a harmful pollutant that causes respiratory illness and premature death and that contributes to the formation of smog,” according to a document filed in Fulton County Superior Court by Georgia Attorney General Chris Carr last week, joining several attorneys general who were already fighting FCA.
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The legal case that Carr tacked on represents two ways Georgians could get money from the Italian-American car maker; there is the state’s case alleging violations of the Fair Business Practices Act that could yield money into the general fund, and there’s the $300 million multistate class action suit that eligible citizens can enter.
In the class action case: Pending final approval by a federal court in California during a May hearing, Georgians who bought the vehicles and get a software fix could expect between $2,460 and $3,075 depending on if they still own the vehicle, according to the proposed settlement. Those who leased could receive $990.
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In the state’s case, court records indicate that the total amount split between 51 states and territories is $72.5 million. If a Fulton judge approves the proposed summary judgment, which according to Carr’s office could happen at any time, the state would get $1.6 million with no stipulations for how it must be spent. The payout amounts are different for each state or territory; for instance, the Associated Press reports West Virginia will receive $302,500.
As explained by Carr in a court filing, Fiat Chrysler decided in 2009 to bring more diesel vehicles to America using its experience in Europe, where diesel is popular for several reasons. Diesels get better mileage, which is key to Europeans facing much higher fuel taxes than Americans; and diesel emits less carbon dioxide, which is closely eyed by environmental regulators as a contributor to global climate change.
The Associated Press contributed to this report.
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